Answer & Explanation:
Step 1
The expected rate of return r is calculated as follows:
r = (expected revenue - cost / cost) * 100%
= (550 - 500 / 500) * 100%
=10%
Step 2
The publisher will choose to invest the machine when the real interest rate is 10% and 9%. When the expected rate of return is higher than the cost of borrowing, that is, the real interest rate, the investment is profitable and should be undertaken.
In this question, the expected rate of return is 10%, higher than the borrowing cost of 8% and 9%; thus, the investment of the new machine should be undertaken.
When the cost of borrowing is 11%, which is higher than the rate of return of 10%, the investment should not be undertaken.
Answer:
The correct answer is high Power Distance index.
Explanation:
Power distance refers to the extent to which less powerful members of organizations and institutions (such as the family) accept and expect power to be distributed unevenly. This dimension does not measure the level of distribution of power in a given culture, but analyzes how people feel about it. A low power distance score means that that culture expects and accepts that power relations are democratic and that its members are considered equal. A high score for this index means that less powerful members of society accept their place and are aware of the existence of formal hierarchical positions.
If you did a break-even analysis for your firm, it would be possible for you to show management the point at which <span>the level of sales that will cover all of the company's costs</span>. A break-even analysis is how management and accountants asses the variable and fixed costs a company has with their sales revenue. When comparing these, the company is able to see at what point they will break even and cover all necessary operating costs. A good way to remember break-even is the point in which a business has no profit or loss.
It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company.
Answer:
<em>Gross Profit= Sales - Cost of Goods Sold</em>
Cost of Goods sold of 1 unit = $ 450,000/50,000
= $ 9
Cost of Goods Sold of 45,000 units = 45,000 * $ 9
= $ 405,000
<em>Gross Profit of 45,000 units = Sales revenue of 45,000 units - Cost of Goods sold of 45,000 units</em>
= 45,000 * $ 15 (Per Unit rate) - $ 405,000
= $ 675,000 - $ 405,000
= <em>$ 270,000 i.e. option b</em>
Explanation:
Refer to the answer.
